Sound familiar? September 2017 China Bitcoin ‘ban’ sparked $20K all-time high in 3 months

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Bitcoin (BTC) dipped deeper to problem $40,000 assist throughout Sept. 24 because the mud settled on what analysts pressured was a false alarm from China.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

A basic bull run formulation?

Knowledge from Cointelegraph Markets Pro and TradingView confirmed new multi-day lows of $40,690 for BTC/USD on Bitstamp, down 8% on the day.

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Hodlers had been frustrated but remained unfazed by the information that China had allegedly upped its cryptocurrency “ban,” this in reality merely being a reiteration of the Individuals’s Financial institution of China’s existing restrictions in place for 4 years.

The occasions have a hoop to them — in September 2017, the unique “ban” announcement despatched Bitcoin tumbling, solely to get better to its authentic ranges inside weeks and set a brand new all-time excessive of $20,000 lower than three months later.

The actual fact was not misplaced on long-time market contributors, together with these on social media, the place the China information had initially resurfaced and sparked panic.

For dealer and analyst Rekt Capital, in the meantime, the sell-off merely highlighted the inexperience of newcomers to the market.

“BTC buyers who’ve been out there for some time have heard many alternative iterations of FUD from China. However newer buyers, unarmed with this expertise, are those who’re affected most,” he tweeted on the day.

“Their panic promoting is what’s fuelling this latest draw back.”

$38,000 assist untouched

The transfer nonetheless erased a number of days of BTC value positive factors, together with these ensuing from Twitter launching Lightning Community tipping.

Associated: Bears aim to pin Bitcoin price below $46K leading into Friday’s $3B BTC options expiry

If to have a look at spot market composition, nonetheless, it was clear that the promoting had had little affect on assist, this nonetheless amassing beneath $40,000.

BTC/USD purchase/ promote ranges (Binance) as of Sept. 24. Supply: Materials Indicators

As Cointelegraph beforehand reported, “line within the sand” ranges for bulls had already been set within the mid-$30,000 vary.

A well-liked minimal monthly close price for September, within the meantime, nonetheless stands at $43,000.